OAK RIDGE, Tenn. (Aug. 30, 2024) – Oak Ridge Electric customers will notice an increase in their electric bills this October.
Beginning October 1, a 2% local rate increase is set to go into effect. The Oak Ridge City Council approved the increase at its August meeting. It is now subject to final approval by the Tennessee Valley Authority (TVA).
“We estimate that it will increase the average monthly residential bill by $2 to $3,” City of Oak Ridge Electric Director Dave Cross said. “The rate will go into effect with meter readings beginning October 1, so roughly 30 days after that is when it will start appearing on bills.”
The 2% increase is across the board – for both businesses and residential customers and is the first local rate increase since before the COVID-19 pandemic.
Changes to the City of Oak Ridge Electric Department (CORED) disconnect and reconnect procedures and fees are also taking effect October 1:
· Initial disconnection: $40
· Reconnection: $40 during normal business hours; if reconnection service is needed after hours, there is an additional $80 fee
“The increases will bring our fees and rates more in line with other cities and utilities. While no one wants their electric bills to go up, we really need this increase to continue to provide a stable electrical grid for our residents,” Cross said. “Work is already underway replacing our aging infrastructure including changing aging poles and copper conductors, as well as work to our substations – all to increase reliability.”
The 2% increase would be in combination with the 5.25% increase TVA’s Board of Directors approved on August 22.
“In addition to the rates we pay TVA for energy, other costs have risen dramatically in the last few years. For example, transformers that cost $1,700 in 2018 are now costing more than $5,000,” Cross said. “That’s a more than 220% increase. Our more expensive transformers are almost $50,000 today and used to cost under $12,500.”
CORED is concerned about the impact this may have on our residents and customers. The Utility Business Office (UBO) offers Budget Billing Plans for those who are eligible that would even out payments so monthly bills are more consistent. To be eligible for budget billing, the customer is encouraged to have a 12-month billing history, cannot have more than three late payments in the last 12 months, and must have a zero balance at the time of enrollment.
For additional information about the City of Oak Ridge, see OakRidgeTN.gov or call the Utility Business Office at (865) 425-3400. For assistance, ADFAC can be reached at (865) 483-6028. For additional information about TVA, see TVA.com.